1. Treasurer’s Report APNIC 31 - 25 th Feb 2011 Hong Kong James Spenceley Treasurer APNIC EC

2. Taxation Status 2010 Historically APNIC classed as a Mutual ATO reviewed APNIC’s status differently APNIC to be taxed as a ‘for profit’ entity Revised assessment for FY05-06-07 Revised tax bill of $424,500 APNIC objected Case Reviewed, objected upheld ATO refunded deposit, no tax bill of $424,500 ATO confirmed that the “Principal of Mutuality” apples to APNIC Member fees APNIC confirmed as “not-for-profit”

3. Financial Status 2010 Summary Completed audit by Ernst & Young: Operating profit of AU$250,556 Operating revenue AUD $13.4m (budget was $12.9m) (4% above budget) Operating expenses AUD $13.2m (budget was $13.0m) (2% above budget)

4. Income Statement - Revenues Revenue (AUD) Actual 2010 Budget 2010 Budget ∆ Budget ∆% Interest income 397,689460,555(62,866)-14% IP resource application fees 1,373,9861,442,149(68,163)-5% ISIF grant received 105,3920 0% Membership fees 10,199,2499,944,932254,3173% Non-members fees 155,382137,35718,02513% Per allocation fees 994,277688,926305,35144% Reactivation fees 17,55013,1014,44934% Sundry income 205,760191,32014,4408% FX rate gain / (loss) (18,471)0 0% TOTAL REVENUE 13,430,81412,878,340552,4734%

5. Income Statement - Expenses Expenses (AUD) Actual 2010 Budget 2010 Budget ∆ Budget ∆% Communication expenses 339,964327,37612,5884% Depreciation expense 696,640783,975(87,335)-11% Donation/ sponsorship 205,987183,78722,20012% ICANN contract fees 321,172306,00015,1725% ISIF grant administration expense 105,3920 0% Meeting and training expenses 249,401287,400(37,999)-13% Membership fees 53,66355,660(1,997)-4% Other operating expenses 1,387,6191,193,988193,63116% Professional fees 554,295933,300(379,005)-41% Rent and Outgoings 1,418,314608,753809,561133% Salaries and personnel expenses 6,507,5846,725,352(217,768)-3% Travel expenses 1,404,5271,518,750(114,223)-8% TOTAL EXPENSES 13,244,55812,924,341320,2172%

6. Operating Profit/(Loss) (AUD) Actual 2010 Budget 2010 Budget ∆ Budget ∆% Total Revenue 13,430,81412,878,340552,4734% Total Expenses 13,244,55812,924,341320,2172% OPERATING PROFIT/ (LOSS) BEFORE INCOME TAX EXPENSE 186,255(46,001)232,257505% Income Tax Expense/(Benefit) (64,301)103,464(167,765)162% OPERATING PROFIT/ (LOSS) AFTER INCOME TAX 250,556(149,465)400,022268%

7. Financial Position as at 31 December 2010 Financial Position (AUD) Year-End 2010 Year-End 2009 Year-End ∆% Current Assets 7,671,457 11,001,836-30% Non-current Assets 9,528,170 3,735,614155% TOTAL ASSETS 17,199,627 14,737,45017% Total Liabilities 8,184,130 5,933,83838% Total Equity9,015,4978,803,6122% TOTAL LIABILITIES & EQUITY17,199,62714,737,45017%

8. APNIC Reserves (At the end of the year, we had more than we started with)

9. Tax objection upheld Revenue greater than budget Expenses great than budget Tight control of costs (and timing) resulted in operating profit Completed move to own office (benefit starting in 2011) Increased Cash Reserves 2010 Key Points In summary 2010 was

10. Questions?

11. APNIC Budget 2011

12. Budget Objectives The APNIC Member and Stakeholder survey was used as the basis to develop the activity and operational plans for the 2011 budget The Overall budget was reviewed, changed and modified by EC Focus on financial stability Ensure high level of financial governance and control in APNIC activities

13. Projected Revenues Revenue (AUD) Budget 2011 % of Total Interest income 330,0002% IP resource application fees 1,128,3168% Membership fees 12,511,22087% Non-member fees 158,5061% Sundry income 311,0632% TOTAL PROJECTED REVENUE 14,439,105100%

14. Projected Expenses Expenses (AUD) Budget 2011 % of Total Communication expenses 427,3683% Depreciation expense 1,015,6137% Sponsorship and publicity expenses 306,5002% ICANN contract fee 322,0002% Meeting and training expenses 381,1003% Membership fees 68,3000% Other operating expenses 1,500,86411% Professional fees 885,3506% Miscellaneous 418,9233% Salaries and personnel expenses 7,406,25552% Travel expenses 1,502,85011% TOTAL PROJECTED EXPENSES 14,235,123 100%

15. Projected Operating Profit Operating Loss (AUD) Budget 2011 Projected Revenue 14,439,105 Projected Expenses 14,235,123 OPERATING PROFIT 203,982

16. 2011 / 2010 Comparison Operating Profit/ (Loss) (AUD) Budget 2011 Actual 2010 Total Revenue 14,439,10513,430,814 Total Expenses 14,235,12313,244,558 Profit (Loss) 203,982 250,556

17. APNIC Budget 2011 Questions?